Victims of the Black Saturday bushfires in Victoria's north-east will share in $32.5 million after a Supreme Court Justice agreed to an out-of-court settlement.

The 2009 bushfires at Beechworth and Mudgegonga claimed two lives and destroyed 38 houses.

The class action group of around 80 people included all those who suffered property damage in the fire.

A trial was originally set down for eight weeks in March but a settlement between victims and defendants - which included the Department of Sustainability and Environment and SPI Electricity - was approved by the Victorian Supreme Court this morning.

Justice Karin Emerton found the settlement of $32.85 million was fair and reasonable.

It is alleged the fire started when a tree fell across a powerline, but Justice Emerton told the court a cause of the fire was not agreed on.

The settlement will amount to around 43 per cent of the total damage bill.

The lead plaintiffs, Paul Mercieca and Amelia Coombes, claimed damages for their personal injuries and for property damage to their rented residential and farm property.